I wanted to alert you to two recent pieces of news about AgilOne, both of which address how we can help you deal with and learn from returns.
It has never been easier to buy and return items online. Even though amazing for the consumer, it’s creating a headache for retailers. All of the buying and returning online has created a headache for them. Amazingly enough, it’s also created a big amount of data, that if seized correctly, can also create a huge amount of revenue. AgilOne tracks and analyzes online and offline shopping behavior. Retailers can use that information to offer items they think you will like, based on the colors, styles and sizes you ordered and kept. The data is also useful on a bigger scale, such as when deciding what items to merchandize and which customers to focus on:
Our CEO, Omer Artun said, “Everybody returns stuff once in a while. What you’re trying to detect is someone that does this very often.” AgilOne allows retailers to track what customers are browsing on the website, what items they’re clicking on, what colors and styles they’ve explored, and what they’ve purchased.
Behind the uptick in e-commerce is a little known secret: As much as a third of all Internet sales gets returned, according to retail consultancy Kurt Salmon. And the tide of goods flowing back to retailers is rising. Shipper United Parcel Service Inc. UPS +0.47% expects returns to jump 15% this season from last year, making them a significant and growing cost for retailers.
Fashion retailing startup Modnique.com is steering some chronic returners away from ordering clothing and shoes by sending them coupons for beauty and jewelry products, items that typically get returned less often.
"You're treating customers like a financial portfolio of stocks that can go up and down in value," said Omer Artun, a former marketing executive at Best Buy Co. BBY +1.82% and CEO of AgilOne Inc. which helps retailers mine customer purchases and predict shopper behavior. "You don't want to treat an unprofitable customer badly, but you do want to treat your good customers better and shower them with positive reinforcement."
As a result, constant returners may see fewer discounts in their inboxes, while their high-spending friends land the better offers.
At Modnique.com, where returned and canceled items can come to as much as 15% of revenue, customer-service agents are allotted a daily amount for such appeasements. They can use discounts, gift cards or other offers to please shoppers that might call in with a problem
Stay tuned. AgilOne and our CEO, Omer Artun, are scheduled to be featured in several other news and media outlets very soon
In the meantime, let us know if you would like more information on AgilOne.